09:29 AM EST, 11/10/2025 (MT Newswires) -- ADENTRA ( HDIUF ) , one of North America's largest distributors of architectural building products, on Monday reported a fall in net income but still beat forecast for the third quarter on better than expected revenues, while it increased its annual dividend

For the three-months ended Sept. 30, the company reported net income of US$10.1 million, compared with $10.4 million, a year earlier. Adjusted diluted earnings per share was US$0.69 compared with $0.73, a year-ago, but beating a consensus estimate compiled by FactSet of US$0.59 per share.

Total sales increased to US$592.1 million in the quarter compared with $568.8 million, a year-ago, beating a consensus estimate compiled by FactSet of US$571.1 million.

The company also increased its annual dividend by 6.7% to C$0.64 per share from C$0.15 per share in the prior month, beginning with the quarterly dividend to be paid Jan. 30, 2026.

"Results of the US Department of Commerce Section 232 investigation largely excluded our products, meaning they are now subject only to country-specific tariff rates, averaging approximately 20%" said ADENTRA ( HDIUF ) Chief Executive Rob Brown. "Our business model is well equipped to handle tariffs at this level, and we do not foresee a material impact on product sourcing or margins as a result."

"Looking ahead to the final quarter of 2025, we anticipate continued strong cash generation even as we enter the seasonally slower winter months," added Brown.

As of Nov. 10, ADENTRA ( HDIUF ) estimates 30% of its product mix will be subject to country-specific tariffs, at average rates of 20%.

"The fourth quarter is a seasonally slower period for construction activity, and we expect our Adjusted EBITDA performance to be similar to what we achieved in the first quarter of 2025," said the company in a statement. "We are targeting double-digit returns on invested capital and accretive growth through a combination of platform efficiency, organic growth initiatives, and tightly managed execution of our market consolidation strategy."

Shares of the company closed down about 2% to $32.24 on Friday on the Toronto Stock Exchange.